Notes on Redfin, technology, real estate and life at a startup.

A Lighter Load: Lower Prices, Interest Rates Good for Buyers

I had lunch with a friend yesterday who has been thinking about buying a property in the North Park, Hillcrest, Ocean Beach area and asked my opinion about whether or not I thought interest rates would come down. He also remarked that he thought there were some good buys on real estate right now. In terms of interest rates, I think they may come down a little but honestly I wouldn’t wait to buy on that alone. Interest rates are already good great and if you’re buying with the intent to hold, potential incremental reductions in interest rates probably won’t make a huge difference in the long run. I definitely agree with his observation that there are great buys on the market. Granted, some sellers are still holding strong when it comes to reducing their asking prices, but that hasn’t deterred others who are anxious to sell, even at a loss. So, for my friends everywhere (including you), here are some fantastic deals that have caught my eye.

Did you friend take your advice and buy before the Fed lowered the interest rate? Twice? Is that person still your friend or has he searched for another friend with an “Economics” background? This is awesome do people actually take your advice?

Hey J – Look, as cliche as it sounds, this is a buyers market. Small cuts in short term interest rates (you understand what short term interest rates are, right?!) are bandaids. I could go on and on about what I think lower interest rates do the economy overall, but that’s another day. Think about this: what will have a better rate of return – a really smart, well timed real estate investment or that CD your money’s sitting in right now?

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